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House Select Committee Bill



We’ve highlighted specific areas below that we will be watching closely and assisting the CAI-NC Legislative Action Committee in striking or amending before this potential bill passes the legislature.


 The amendments include:

  • Special assessments would follow the same ratification process as budgets in the Planned Community Act.
  • If an association does not call a special meeting upon demand within 30 days, the owners can notice and hold the meeting.
  • Meetings of the association and directors could be held by telephonic, video or other conferencing means so long as all owners can hear and perceive the discussion as well as comment.
  • Lot owners must be given a reasonable opportunity to comment at any board meeting (rather than just at regular intervals).
  • Meetings of the board must be open to homeowners, except for executive sessions for specified reasons, including consulting with the association attorney; discussing administrative or court proceedings, personnel matters, or contracts; or to prevent public knowledge of a matter that could violate the privacy of any person.
  • Notice must be given to the homeowners of director meetings.
  • A board can only use written unanimous consent to undertake ministerial actions or implement previously taken actions.  Notice of such action must be given to the membership.
  • Prior to filing a lien for assessments, the association must make an offer to accept payments in installments.
  • A lien may not be filed regarding assessments unless the assessment has remained unpaid for 90 days or more and the lot owner has failed to accept or comply with a proposed installment schedule.
  • No foreclosure of a claim of lien can be taken unless the board votes to commence the proceeding against the specific lot.
  • Association payments shall apply in the following priority: (a) Unpaid assessments; (b) late charges; (c) attorneys’ fees, and (4) fees, fines, interest and associated late fees.
  • A claim of lien may be filed more quickly if the owner has accepted a proposed installment schedule and then fails to comply with its terms.
  • A detailed list of association documents that must be maintained is provided, including records of receipts and expenditures, minutes of all member and board meetings, names of lot owners, organizational documents, financial statements and tax returns for 3 years, a list of current board members, annual income and expense statements, current contracts, architectural request and disposition records, ballots, proxies and other voting records. 
  • All required records must be retained and made available for inspection within 15 days.  Certain documents are specifically excluded from inspection, including personnel records and executive session minutes.
  • Parties to a dispute may agree to alternative dispute resolution using a certified person.
  • As in the condominium act, specific triggers are imposed by which declarant control must terminate.
  • Statutory language regarding how special declarant rights are transferred is added to the statute.
  • Certain contracts, such as with a management company or affiliates of the declarant, that are entered into prior to transfer to the lot owners, may be terminated with 90 days’ notice.
  • A former declarant can be made liable for litigation expenses and attorneys’ fees in instances where the association is sued for a wrong that occurred during a period of declarant control.
  • Certain disclosures must be made by the association to any prospective purchaser, including information on assessments, budgets, unsatisfied judgments, etc., within 10 days of a request by a lot owner.  A purchaser is not liable for any unpaid assessment or fee greater than the amount set forth in the certificate prepared by the association.
  • The association may charge for the resale certificate described above.

As proposed, the amendments would become effective and apply to planned communities created after adoption of the amendments, and to older planned communities “with respect to events and circumstances occurring on [or] after” adoption. 

As drafted, the proposed amendments only applied to planned communities.  However, Rep. Cleveland recommended that similar amendments be made to the Condominium Act, and this recommendation was adopted by the Committee.  While there was discussion of an entity to supervise and handle association complaints, no action was taken to create or assign such a body.  However, the Committee did approve proposing the Attorney General’s office be the repository of any complaints regarding associations.


A proposal was made regarding solar panels, which would have removed the current ability for associations to regulate solar panels as to visibility.  However, the Committee felt this legislation was not connected enough to include in the above amendments.  The Committee took no action on solar panel legislation.


The amendments were unanimously approved and will be forwarded on behalf of the Committee to the House. 


As the Committee ended just last night, few have had an opportunity to review the proposals in depth.  Many eyes will be examining the draft bill over the next few weeks.  While many of the proposals would benefit both associations and their members, there will certainly be problem areas that will likely be amended.  


*These articles and related content on this website are provided without warranty of any kind and in no way constitute or provide legal advice. You are advised to contact an attorney in Association Management for legal advice related to your specific issue and community. Some articles are provided by third parties and online services. Display of these articles does in no way endorse the products or services of Community Association Management by the author(s).